Answer Happy

Audio City, Incorporated, is developing its annual financial statements at December 31. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized below: Current Year Previous Year Balance Sheet at December 31 Cash $ 82,600 Accounts Receivable Inventory $ 80,200 18,200 26,800 24,000 Equipment 239,000 24,000 158,000 (53,000) Accumulated Depreciation-Equipment (72,000) Total Assets $ 292,200 $ 235,600 Accounts Payable $ 20,600 Salaries and wages Payable Notes Payable (long-term) Common Stock $ 8,800 2,200 64,000 116,000 1,000 83,000 78,000 53,000 Retained Earnings 101,200 Total Liabilities and Stockholders' Equity $ 292,200 $ 235,600 Income Statement Sales Revenue $ 224,000 Cost of Goods Sold 98,000 72,000 Other Expenses $ 54,000 Net Income Additional Data: a. Bought equipment for cash, $81,000. b. Paid $19,000 on the long-term notes payable, c. Issued new shares of stock for $38,000 cash. d. Dividends of $5,800 were paid in cash. e. Other expenses included depreciation, $19,000; salaries and wages, $24,000, taxes, $29,000. - Accounts Payable includes only inventory purchases made on credit. Because a liability relating to taxes does not exist, assume that they were fully paid in cash. Required: 1. Prepare the statement of cash flows for the current year ended December 31 using the indirect method. (Amounts to be deducted should be indicated by a minus sign.)
AUDIO CITY INCORPORATED Statement of Cash Flows For the Year Ended December 31 Cash Flows from Operating Activities: Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Changes in Current Assets and Current Liabilities Cash Flows from Investing Activities: Cash Flows from Financing Activities: